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March 7, 2007
The Ezra Files: Chaos in the budding telegraph business
Always confident of a great commercial future for the telegraph, Ezra Cornell enthusiastically demonstrated it, enlisted capital and built lines. Although this work frequently left his family destitute, Cornell always took a large part of his pay in stocks and invested in the first telegraph company, which connected New York and Washington. He built lines from New York City to Philadelphia and to Albany, as well as lines in New York, Vermont and Quebec, and west to Buffalo, Cleveland, Detroit, Chicago and Milwaukee. He was involved in the rapid construction of subsidiary lines, especially in the Midwest, where the telegraph preceded rather than followed the railroad. Yet, these early days of the telegraph industry were tumultuous and did not reap much revenue for Cornell. Many companies formed, operated briefly and died. Stronger companies managed to survive despite conflicts, deception and numerous lawsuits. Service on the hastily built lines was frequently unreliable. Cornell's dismay with the business is evident in this Sept. 16, 1851, letter to telegraph business associate Amos Kendall:
Adapted by Susan S. Lang from the Web site, "Invention and Enterprise: Ezra Cornell, a Nineteenth-Century Life." ##
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